Residential Construction Costs Rise in Luxembourg

On Wednesday 14 January 2026, Luxembourg's national statistics institute, STATEC, reported that after several semesters of weak growth, residential construction prices in Luxembourg have begun to rise, recording an increase of 0.8% between April and October 2025.

In its report, STATEC said that following a decline in 2024, prices for structural works increased again in 2025. Between April and October 2025, they rose by 0.6%, mainly driven by higher masonry prices. Earthworks, by contrast, recorded a decrease of 0.6%. Prices for roofing works increased by 1.4% over the six-month period, a pace similar to that of the previous semester. 

According to STATEC, this trend mainly reflected higher prices for timber, insulation materials and other supplies such as roof windows and tiles. Accordingly, prices for timber frameworks (+1.3%) and insulation works (+1.9%) remained broadly in line with the previous semester, while roofing slowed markedly, with an increase limited to 1.0%.

In relation to building enclosure works, which include windows fitted with solar protection devices, garage doors and façades, growth weakened slightly compared with the previous semester (+0.7% between April and October 2025). Prices for external joinery slowed (+1.2%), while façade works largely stabilised (+0.3%).

Technical installations recorded an increase of 1.2% between April and October 2025, a rise similar to that of the previous semester. Sanitary installations (+1.0%), heating and ventilation systems (+1.1%) and electrical installations (+1.9%) were the main contributors to this increase.

Finishing works showed some easing, with an increase limited to 0.6% over the six-month period. Most services progressed at a pace close to 1% over the semester, notably floor coverings, internal joinery and metalwork and painting. Other finishing services, such as tiling (+0.3%), marble work (+0.4%), plastering (+0.1%) and screeds and renders (+0.0%), showed stagnation or very weak growth. Year on year, finishing works remain, after structural works, the trade category with the smallest price increase, with an annual rise of 1.9%.

STATEC noted that the overall composite index for October 2025, expressed on a base of 100 in 1970, stood at 1,173.24 points. This index supports the indexation of almost all fire insurance contracts, as well as many other applications such as the updating of quotations or contracts for off-plan property sales.

The construction price index tracks price changes, excluding VAT, for services carried out in residential construction, excluding land costs. It reflects changes in the prices of materials and labour, as well as changes in productivity and contractors’ margins. Authorities calculate indices and rates of change on a six-monthly basis for construction as a whole and for individual trades and groups of services.

The index is published twice a year: in January for data relating to October of the previous year and in July for data relating to April. The results of the index for April 2026 will be published on 16 July 2026 following the biannual meeting of the Technical Advisory Commission for the Construction Price Index.